SFO round-up: Recent outcomes and continued challenges

In May of this year, the Serious Fraud Office (SFO) published its 2021/22 Business Plan, bringing the organisation into the final year of its 2019-2022 Strategic Plan. Reflecting on its successes, the SFO concluded it had responded "exceptionally well" to the changes of the past year.

At an initial glance, perhaps the SFO's confidence is warranted. It was only a few days ago that a new Deferred Prosecution Agreement (DPA) was confirmed with Amec Foster Wheeler Energy Limited, a subsidiary of John Wood Group PLC (Wood). Through the SFO-led investigation, Wood has entered into coordinated resolutions with enforcement agencies across the US and Brazil as well. Under the terms of the DPA, Wood will pay a financial penalty and costs amounting to £103m in the UK, forming part of a $177 millionglobal settlement over the next three years. As part of that deal, Wood has admitted to paying bribes to win a $190 million contract to design an industrial facility for Brazilian state-owned energy company Petrobras.

In recent months the SFO has also secured GPT's guilty plea to corruption, following an investigation that began in August 2012 relating to contracts awarded in respect of work carried out for the Saudi Arabian National Guard. This follows the conclusion of a number of other high-profile investigations in 2020, with the SFO entering into DPAs with G4S Care & Justice Services Limited and Airline Services Limited, collectively securing over £45 million in fines and penalties. Perhaps a consistent feature of the SFO's last few Business Plans, Unaoil also remains fertile ground for SFO activity.

Still, it is no secret that the SFO is facing some very public challenges. A number of high-profile cases have been closed without charge in 2021, including KBR Inc. and British American Tobacco. Beyond dropping the case itself, the KBR Inc. investigation also resulted in a significant blow to the SFO's extraterritorial reach, dealt at the hands of the UK Supreme Court. It should perhaps then come as no surprise that, including 6 finalised DPAs that have yet to expire, there are only 43 active cases, down from 75 in 2018. 

Despite the recent DPA successes, it is worth noting that not a single conviction for an individual has resulted from any DPA to date. Most recently (and perhaps most notably), were the mistakes in the case against two former Serco executives. In the SFO's own words, it was "errors made in the non-disclosure of certain materials"that resulted in the judge rebuffing the SFO's request for an adjournment, and directing the jury to deliver verdicts of not guilty.

In a tenure that includes an internal review into her own conduct and an ongoing civil claim against the entire organisation brought by ENRC, Director Lisa Osofsky and the team look to be in need of some good press. It seems this need is recognised internally as well. In the SFO's Business Plan, nestled between the celebrations of its successes, is an acceptance that the SFO needs to build its "brand and image". Necessary as it may be, it remains to be seen how successful the organisation will be in doing so.